Monday, October 5, 2009

Tuesday, September 8, 2009

This is a thousand and one dollar question and many have answer it differently. How you answer it very much depend who you are, how old you are, what you are doing and where you plan to head in life.

If you are a person who would like to accumulate wealth, for wealth, I mean liquid money, not on semi liquid assets or illiquid collections.

For liquid money, I mainly refers to cash or even near cash assets like FDs, CDs, Fx or even equities or derivatives instrument where one can converts them into cash easily in the open market.

In short, what I am trying to say is how to accumulate one million dollars in your life so that you live on interest gain when you go for retirement. After all, you have work hard enough in this life for the past say 20, 30 or may be even 40 years and it is now the time to sit back and enjoy your remaining years.

To get to one million, it might sound tough at the first glance but if you plan for it, then this might not be that difficult as it seems.

There are three certainties(high rating) and one uncertainty.The certainties are as follow:1. Number of years your are committed to do a mandatory saving. i.e. a certain portion out from hour take home income.2. Amount your are willing to set aside to achieve the said goal.3. Your ultimate goal is one million(may be 0.5 million depending your own objective you are going to set now).

Now, you left with the final question and i.e. the uncertainty and that refer to the annual rate of return for your investment for your annually set aside amount.

Now, let me illustrate with an example, Johnson is now 33 years old and he is planing to retire with one million cash in hand when he turns 50. What should he do?

Looking at scenario and assuming he has zero saving now, he has 17 years left to accomplish the GOAL. Moreover, assuming that Johnson is able to come out with $13,938.88 per year continuously for the next 17 years from his take home income or $1,161.6 per month for the next 17 years from his take home income without a break in between, then Johnson will be able to achieve his goal of one million PROVIDED his average annual RATE OF RETURN from his investment on the amount saved would be 15% per annum.

15% p.a., just 15% p.a on average, Johnson will be able to realize his MILLIONAIRE's GOAL when turn 50s. Do you want to be the next one?

Write me at caltin66@gmail.com for consultation and I will help you to identify your sources and applications of fund and design a suitable package for you to join the MILLIONAIRE CLUB in due time. Let your money being spend wisely and grow too!